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CS Professional · Banking and Insurance - Laws and Practice · Inspection, Investigation, Penalty and Appellate Procedure

During an investigation of Bharat General Insurance Ltd., the Investigating Officer needs help to examine complex reserving calculations. Under Section 33, what may the Investigating Officer do?

The Investigating Officer may, wherever necessary, employ an auditor, an actuary or both to assist in the investigation. The proviso to Section 33(1) grants this power directly, with no tribunal approval needed and no prohibition on outside help.

  1. AEmploy an auditor or an actuary or both, wherever necessary, to assist in the investigationCorrect
  2. BAppoint an auditor or actuary only after the Securities Appellate Tribunal approves
  3. CDelegate the whole investigation to the insurer's own statutory auditor
  4. DDo nothing, because the Act forbids outside assistance

Explanation

The proviso to Section 33(1) lets the Investigating Officer, wherever necessary, employ any auditor or actuary or both to assist him in the investigation. No tribunal approval is required, and the Act does not require delegating the work to the insurer's own auditor.

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